The world of digital assets is rapidly entering the mainstream, as highlighted in the comprehensive “State of Crypto” report released by venture capital giant Andreessen Horowitz. This detailed analysis sheds light on the burgeoning international market for stablecoins, the evolution of infrastructure, and a marked decrease in transaction fees, all of which are propelling a remarkable surge in cryptocurrency activity this year.
Rising Tide of Active Monthly Crypto Addresses
According to Eddy Lazzarin, Chief Technology Officer at Andreessen Horowitz, “Crypto activity has reached unprecedented levels,” showcasing significant growth across various dimensions of the market. Released on a recent Wednesday, the report segments crypto activity into three primary categories: users, owners, and active crypto addresses.
The term “owners” refers to individuals who hold digital assets without necessarily engaging directly with the blockchain. In contrast, “users” are those actively leveraging blockchain technology for transactions, such as buying non-fungible tokens (NFTs) or transferring stablecoins like Circle’s USDC. Interestingly, only a small fraction—estimated between five to ten percent—of crypto owners are classified as active users.
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Nevertheless, the report unveils a remarkable surge in active monthly addresses, which skyrocketed to 220 million in 2024, a significant leap from less than 100 million in 2023. This growth trajectory is reminiscent of the early adoption patterns seen during the nascent stages of the internet.
The report further highlights that the total number of global crypto owners now stands at a staggering 617 million, while active users range between 30 to 60 million. Lazzarin attributes the gap between owners and active users to the “complex user experience,” suggesting that improving app usability, reducing costs, and achieving regulatory clarity could re-engage passive crypto holders.
Impact of Transaction Fee Reduction on Crypto Growth
Stablecoins have discovered what Lazzarin terms as “product-market fit.” The report indicates that 32% of daily crypto activity is currently driven by stablecoins, surpassing all other categories except decentralized finance (DeFi). This growth is particularly notable in countries grappling with hyperinflation, such as Argentina, where the local currency, the peso, depreciated by an astounding 82%. Consequently, many Argentinians have turned to stablecoins to safeguard their assets, leading to an eye-opening 10,000% surge in stablecoin trading on the Mexican exchange Bitso.
The reduction in transaction fees has been a pivotal factor in driving this unprecedented activity within the digital asset space. The report underscores how advancements in Ethereum’s scaling solutions have slashed the cost of sending USD internationally by a remarkable 99%. While traditional international wire transfers often incur fees of around $44, transferring USDC through Coinbase’s Base Layer 2 solution costs less than one cent.
Ultimately, the report credits this cost reduction to a “maturing” digital asset infrastructure, marked by the emergence of new blockchains and enhanced interoperability. These advancements have played a crucial role in fostering the growth and adoption of digital assets.
As of the time of writing, the total cryptocurrency market capitalization stands at a robust $2.27 trillion, with roughly $250 million in fresh capital flowing into the digital asset ecosystem over the past five days.
